In the Matter of the Estate of Carlson

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Carol Jean Carlson (Decedent) learned she was terminally ill in 2011, and retained an attorney to assist her in planning the disposition of her estate. Decedent executed three transfer-on-death deeds (TODDs) pursuant to the Nontestamentary Transfer of Property Act for real property she owned, as well as a Last Will and Testament. One of the pieces of real property transferred via TODD went to Debra Glover. The first of the other two TODDs named Appellee Clifford Cornish (Cornish) as grantee and the second named Eldin Lewis (collectively referred to as Grantees). Decedent died on August 29, 2011, five days after executing the TODDs and her Last Will and Testament. Prior to Decedent's estate planning and the execution of the TODD, Decedent executed a promissory note in the amount of $140,224.35 in 2006 in favor of The Margee and Robert W. Minter Living Trust. This note was secured by a mortgage, filed December 21, 2006, which encumbered the property conveyed to Lewis via the TODD. Lewis timely accepted the TODD. In 2011, Lewis filed a proof of claim with the Personal Representative for the remaining debt in the amount of $123,530.09. The Personal Representative rejected Lewis' claim on December 16, 2011. At issue in this cause is whether Carlson's estate was liable for the underlying debt on the mortgaged property transferred by TODD, when the grantor's will contained express instructions for the payment of all debts secured by mortgages. The Supreme Court determined that it was. View "In the Matter of the Estate of Carlson" on Justia Law